Introduction :: LITHUANIA

Lithuanian lands were united under MINDAUGAS in 1236; over the next century, through alliances and conquest, Lithuania extended its territory to include most of present-day Belarus and Ukraine. By the end of the 14th century Lithuania was the largest state in Europe. An alliance with Poland in 1386 led the two countries into a union through the person of a common ruler. In 1569, Lithuania and Poland formally united into a single dual state, the Polish-Lithuanian Commonwealth. This entity survived until 1795 when its remnants were partitioned by surrounding countries. Lithuania regained its independence following World War I but was annexed by the USSR in 1940 - an action never recognized by the US and many other countries. On 11 March 1990, Lithuania became the first of the Soviet republics to declare its independence, but Moscow did not recognize this proclamation until September of 1991 (following the abortive coup in Moscow). The last Russian troops withdrew in 1993. Lithuania subsequently restructured its economy for integration into Western European institutions; it joined both NATO and the EU in the spring of 2004. In 2015, Lithuania joined the euro zone.

Independence Day (or National Day), 16 February (1918); note - 16 February 1918 was the date Lithuania established its statehood and its concomitant independence from Soviet Russia and Germany; 11 March 1990 was the date it declared the restoration of Lithuanian statehood and its concomitant independence from the Soviet Union

history: several previous; latest adopted by referendum 25 October 1992, entered into force 2 November 1992

amendments: proposed by at least one-fourth of all Parliament members or by petition of at least 300,000 voters; passage requires two-thirds majority vote of Parliament in each of two readings three months apart and a presidential signature; amendments to constitutional articles on national sovereignty and constitutional amendment procedure also require three-fourths voter approval in a referendum; amended 1996, 2003, 2006 (2016)

cabinet: Council of Ministers nominated by the prime minister, appointed by the president, and approved by Parliament

elections/appointments: president directly elected by absolute majority popular vote in 2 rounds if needed for a 5-year term (eligible for a second term); election last held on 11 and 25 May 2014 (next to be held in May 2019); prime minister appointed by the president, approved by Parliament

description: unicameral Parliament or Seimas (141 seats; 71 members directly elected in single-seat constituencies by absolute majority vote and 70 directly elected in a single nationwide constituency by proportional representation vote; members serve 4-year terms)

elections: last held on 9 and 23 October 2016 (next to be held in October 2020)

judge selection and term of office: Supreme Court judges nominated by the president and appointed by the Seimas; judges serve 5-year renewable terms; Constitutional Court judges appointed by the Seimas from nominations - three each by the president of the republic, by the Seimas chairperson, and by the Supreme Court president; judges serve 9-year, nonrenewable terms; one-third of membership reconstituted every 3 years

three equal horizontal bands of yellow (top), green, and red; yellow symbolizes golden fields, as well as the sun, light, and goodness; green represents the forests of the countryside, in addition to nature, freedom, and hope; red stands for courage and the blood spilled in defense of the homeland

Economy :: LITHUANIA

After the country declared independence from the Soviet Union in 1990, Lithuania faced an initial dislocation that is typical during transitions from a planned economy to a free-market economy. Macroeconomic stabilization policies, including privatization of most state-owned enterprises, and a strong commitment to a currency board arrangement led to an open and rapidly growing economy and rising consumer demand. Foreign investment and EU funding aided in the transition. Lithuania joined the WTO in May 2001, the EU in May 2004, and the euro zone in January 2015, and is now working to complete the OECD accession roadmap it received in July 2015. In 2017, joined the OECD Working Group on Bribery, an important step in the OECD accession process.

The Lithuanian economy was severely hit by the 2008-09 global financial crisis, but it has rebounded and become one of the fastest growing in the EU. Increases in exports, investment, and wage growth that supported consumption helped the economy grow by 3.6% in 2017. In 2015, Russia was Lithuania’s largest trading partner, followed by Poland, Germany, and Latvia; goods and services trade between the US and Lithuania totaled $2.2 billion. Lithuania opened a self-financed liquefied natural gas terminal in January 2015, providing the first non-Russian supply of natural gas to the Baltic States and reducing Lithuania’s dependence on Russian gas from 100% to approximately 30% in 2016.

Lithuania’s ongoing recovery hinges on improving the business environment, especially by liberalizing labor laws, and improving competitiveness and export growth, the latter hampered by economic slowdowns in the EU and Russia. In addition, a steady outflow of young and highly educated people is causing a shortage of skilled labor, which, combined with a rapidly aging population, could stress public finances and constrain long-term growth.

note: official data; data cover general government debt, and includes debt instruments issued (or owned) by government entities other than the treasury; the data include treasury debt held by foreign entities, debt issued by subnational entities, as well as intra-governmental debt; intra-governmental debt consists of treasury borrowings from surpluses in the social funds, such as for retirement, medical care, and unemployment; debt instruments for the social funds are sold at public auctions

general assessment: adequate; being modernized to provide improved international capability and better residential access

domestic: rapid expansion of mobile-cellular services has resulted in a steady decline in the number of fixed-line connections; mobile-cellular teledensity stands at about 145 per 100 persons

international: country code - 370; major international connections to Denmark, Sweden, and Norway by submarine cable for further transmission by satellite; landline connections to Latvia and Poland (2016)

Transnational Issues :: LITHUANIA

Lithuania and Russia committed to demarcating their boundary in 2006 in accordance with the land and maritime treaty ratified by Russia in May 2003 and by Lithuania in 1999; Lithuania operates a simplified transit regime for Russian nationals traveling from the Kaliningrad coastal exclave into Russia, while still conforming, as a EU member state having an external border with a non-EU member, to strict Schengen border rules; boundary demarcated with Latvia and Lithuania; as of January 2007, ground demarcation of the boundary with Belarus was complete and mapped with final ratification documents in preparation

transshipment and destination point for cannabis, cocaine, ecstasy, and opiates from Southwest Asia, Latin America, Western Europe, and neighboring Baltic countries; growing production of high-quality amphetamines, but limited production of cannabis, methamphetamines; susceptible to money laundering despite changes to banking legislation